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Union Cabinet Approves ₹1 Lakh‑Crore RDI Scheme; TDB & BIRAC Receive ₹2,000 Crore Funding

The Union Cabinet approved a ₹1 lakh crore six‑year <span class="key-term" data-definition="Research, Development and Innovation (RDI) Scheme — a programme that offers low‑interest loans and equity support to private R&D projects (GS3: Economy).">RDI Scheme</span>, with TDB and BIRAC each receiving ₹1,000 crore. The scheme provides loan‑based financing, uses a specialised evaluation framework, and is open to innovators nationwide, reflecting India's push for high‑impact technology development.
Overview The RDI Scheme was approved by the Union Cabinet on 1 July 2025 and launched by the Prime Minister on 3 November 2025 . Its aim is to attract private investment in high‑risk, high‑impact technologies by offering financial assistance that is not a conventional grant but a mix of long‑term, low‑interest loans, equity and equity‑linked instruments. Key Developments Two TDB and BIRAC each received ₹1,000 crore under the scheme, totalling ₹2,000 crore . ₹500 crore was disbursed to TDB in March 2026 for onward financing of eligible technology entities. TDB has approved 22 projects with a total cost of ₹4,744 crore , of which ₹2,192 crore is covered by the scheme. BIRAC has shortlisted 8 projects for a combined support of ₹390.35 crore . The scheme does not provide direct grants; all assistance is through low‑interest long‑term loans and equity instruments. Important Facts The evaluation framework is distinct from ordinary commercial lending. An empowered Investment Committee reviews applications using criteria such as degree of innovation, TRL , market potential, management capability and strategic impact. Traditional parameters like collateral are secondary. The scheme is pan‑India. It does not earmark funds for any state, city or region. Proposals are evaluated by multiple <span class="key-term" data-definition="Second‑Level Fund Managers (SLFMs) — agencies or insti
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Key Insight

RDI Scheme shifts innovation funding to low‑interest loans and equity, boosting private R&D.

Key Facts

  1. RDI Scheme: छह‑सालीय, ₹1 लाख‑क्रोड़ (₹100,000 क्रोड़) कार्यक्रम 1 July 2025 को मंजूर किया गया।
  2. Scheme को Prime Minister ने 3 Nov 2025 को लॉन्च किया।
  3. TDB और BIRAC को प्रत्येक को ₹1,000 crore आवंटित किया गया, कुल ₹2,000 crore योजना के तहत।
  4. ₹500 crore को March 2026 में TDB को आगे के वित्तपोषण के लिए वितरित किया गया।
  5. TDB ने 22 परियोजनाओं को मंजूरी दी, जिनकी लागत ₹4,744 crore है; योजना इस लागत में से ₹2,192 crore को कवर करती है।
  6. BIRAC ने 8 परियोजनाओं को शॉर्टलिस्ट किया, कुल समर्थन ₹390.35 crore के साथ।
  7. वित्तपोषण केवल कम‑ब्याज वाले दीर्घकालिक ऋण और इक्विटी/इक्विटी‑लिंक्ड उपकरणों के रूप में प्रदान किया जाता है, न कि सीधे अनुदान के रूप में।

Background

India is moving from grant‑based research support to market‑oriented financing to attract private capital for high‑risk, high‑impact technologies. The RDI Scheme aligns with the government's goal of creating a robust innovation ecosystem and ties into industrial policy, fiscal allocation, and technology promotion themes in the UPSC syllabus.

UPSC Syllabus

  • Essay — Science, Technology and Society
  • Essay — Economy, Development and Inequality
  • GS3 — IT, Space, Computers, Robotics, Nano-technology, Bio-technology and IPR
  • Prelims_GS — Constitution and Political System
  • GS3 — Developments in science and technology and their applications
  • GS1 — Poverty and Developmental Issues
  • GS4 — Work culture, quality of service delivery, utilization of public funds, corruption

Mains Angle

GS3 (Science & Technology/Economy) – discuss how the RDI Scheme reshapes India's innovation financing and its implications for industrial growth and fiscal policy.

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Overview

Full Article

Overview

The RDI Scheme was approved by the Union Cabinet on 1 July 2025 and launched by the Prime Minister on 3 November 2025. Its aim is to attract private investment in high‑risk, high‑impact technologies by offering financial assistance that is not a conventional grant but a mix of long‑term, low‑interest loans, equity and equity‑linked instruments.

Key Developments

  • Two TDB and BIRAC each received ₹1,000 crore under the scheme, totalling ₹2,000 crore.
  • ₹500 crore was disbursed to TDB in March 2026 for onward financing of eligible technology entities.
  • TDB has approved 22 projects with a total cost of ₹4,744 crore, of which ₹2,192 crore is covered by the scheme.
  • BIRAC has shortlisted 8 projects for a combined support of ₹390.35 crore.
  • The scheme does not provide direct grants; all assistance is through low‑interest long‑term loans and equity instruments.

Important Facts

The evaluation framework is distinct from ordinary commercial lending. An empowered Investment Committee reviews applications using criteria such as degree of innovation, TRL, market potential, management capability and strategic impact. Traditional parameters like collateral are secondary.

The scheme is pan‑India. It does not earmark funds for any state, city or region. Proposals are evaluated by multiple

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RDI Scheme shifts innovation funding to low‑interest loans and equity, boosting private R&D.

Key Facts

  1. RDI Scheme: छह‑सालीय, ₹1 लाख‑क्रोड़ (₹100,000 क्रोड़) कार्यक्रम 1 July 2025 को मंजूर किया गया।
  2. Scheme को Prime Minister ने 3 Nov 2025 को लॉन्च किया।
  3. TDB और BIRAC को प्रत्येक को ₹1,000 crore आवंटित किया गया, कुल ₹2,000 crore योजना के तहत।
  4. ₹500 crore को March 2026 में TDB को आगे के वित्तपोषण के लिए वितरित किया गया।
  5. TDB ने 22 परियोजनाओं को मंजूरी दी, जिनकी लागत ₹4,744 crore है; योजना इस लागत में से ₹2,192 crore को कवर करती है।
  6. BIRAC ने 8 परियोजनाओं को शॉर्टलिस्ट किया, कुल समर्थन ₹390.35 crore के साथ।
  7. वित्तपोषण केवल कम‑ब्याज वाले दीर्घकालिक ऋण और इक्विटी/इक्विटी‑लिंक्ड उपकरणों के रूप में प्रदान किया जाता है, न कि सीधे अनुदान के रूप में।

Background & Context

India is moving from grant‑based research support to market‑oriented financing to attract private capital for high‑risk, high‑impact technologies. The RDI Scheme aligns with the government's goal of creating a robust innovation ecosystem and ties into industrial policy, fiscal allocation, and technology promotion themes in the UPSC syllabus.

UPSC Syllabus Connections

Essay•Science, Technology and SocietyEssay•Economy, Development and InequalityGS3•IT, Space, Computers, Robotics, Nano-technology, Bio-technology and IPRPrelims_GS•Constitution and Political SystemGS3•Developments in science and technology and their applicationsGS1•Poverty and Developmental IssuesGS4•Work culture, quality of service delivery, utilization of public funds, corruption

Mains Answer Angle

GS3 (Science & Technology/Economy) – discuss how the RDI Scheme reshapes India's innovation financing and its implications for industrial growth and fiscal policy.

Analysis

Related PYQs

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Practice Questions

GS2
Medium
Prelims MCQ

Science & Technology – Innovation financing

1 marks
4 keywords
GS3
Easy
Mains Short Answer

Industrial Policy – Evaluation framework

5 marks
4 keywords
GS3
Hard
Mains Essay

Economic Policy – Innovation financing

25 marks
5 keywords
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